© Texas Instruments General | January 28, 2020
TI to shutter two plants, expand in Richardson
In an earnings call to shareholders last week, Texas Instruments disclosed that it will close two wafer plants in the next three to five years, with the construction of the company’s Richardson plant continuing.
On the call, investor relations executive Dave Pahl said the two 50+ year old factories, located in Dallas and Sherman, are the last ones still producing 150mm wafers and have a combined revenue of approximately USD 1.5 billion. The closures are a multi-year project, with completion expected no earlier than 2023 and no later than 2025. The Dallas Morning News is reporting that each facility employs approximately 500 people, and that the factories will see no immediate staffing level changes. Many workers will transfer to other Dallas-area manufacturing sites, with others scheduled to receive severance packages and transition assistance. In Richardson, where the company will focus on 300mm wafers, dirt is being moved and cranes are on site, with the shell of the building expected to be completed in late 2021; installation of tools and staffing will be dependent on market demand, according to a TI spokesperson on the earnings call. In a statement to the Dallas Morning News, the company said the Dallas and Sherman factories "have been instrumental to TI’s success for the last five decades; however, they do not have the scale, infrastructure and efficiency needed to be upgraded to 300-millimeter technology and carry us competitively into the future.” In his wrap-up to his remarks to investors, Pahl reiterated TI’s plan to remain focused on analog and embedded, specifically within the automotive and industrial semiconductor markets, as they are the fastest growing and have the potential to provide both diversity and longevity for the 90-year old company. Texas Instruments has 14 manufacturing sites around the world, including those in North Texas and Maine.
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